ProductsPregunta 37 de 110

When must a prospectus be delivered to a purchaser of open-end fund shares?

a.Within 30 days after the trade settles
b.Only if the customer requests it in writing
c.At or before the confirmation of the sale, and always before or during any solicitation of the sale
d.Only for purchases exceeding $10,000

Explicación

Because open-end funds are in continuous primary distribution, every purchase is a new issue and the buyer must receive the current prospectus no later than the confirmation. Delivery is mandatory regardless of dollar amount and does not depend on a customer request. A delivery 30 days after settlement would deprive the investor of disclosure before the investment decision.

Referencia Legal: Securities Act of 1933

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